BlackRock is preparing to significantly scale its investment footprint in Saudi Arabia, signalling plans to double or even triple its commitments in the kingdom as infrastructure and AI-related deal flow accelerates, according to sources cited by Bloomberg.

The firm has already invested more than $35bn across Saudi equities, fixed income, and infrastructure. It now operates four investment teams in Riyadh under the leadership of Kashif Riaz, who heads BlackRock’s Financial Markets Advisory business in the Middle East.

“We think we’ve just gotten started with the theme of the Middle East as an investment destination,” Riaz said, noting that the firm sees its future Saudi exposure growing substantially. He identified infrastructure as the most compelling opportunity as Saudi Arabia builds out transport networks, expands the Riyadh metro, develops one of the world’s largest new airports, and accelerates data-centre construction through its AI champion Humain.

The expected expansion aligns with the increasing role of private capital in Saudi Arabia’s economic transition. BlackRock and its Global Infrastructure Partners division have already led several landmark transactions, including an $11bn deal involving Aramco’s natural gas facilities and participation in the $40bn acquisition of Aligned Data Centers alongside Abu Dhabi’s MGX.

BlackRock established its Saudi presence in 2019 and accelerated growth last year after agreeing a $5bn partnership with the Public Investment Fund to build a Riyadh-based investment platform. The firm now employs about 40 people in the kingdom, with plans to add multi-asset capabilities and launch new mutual funds. It is also working with domestic authorities on developing the residential mortgage-backed securities market.

Saudi Arabia is courting global asset managers as it seeks external capital to fund large-scale infrastructure, digital, and financial-market projects. Riaz said he expects private capital and capital markets to play a growing role in supporting the kingdom’s non-oil economy.

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